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Patrick: $1B needed for transit upgrades

Next question is, where will it come from?

By Chris Camire, ccamire@sentinelandenterprise.com

Updated:
01/15/2013 06:32:04 AM EST

BOSTON -- Gov. Deval Patrick said Monday the state needs an additional $1 billion per year over the next decade to maintain and upgrade its aging transportation system, but did not specify how taxpayers will pay for the new spending.

Patrick vowed to unveil more details of his plan during his State of the State address Wednesday night. A plan released Monday by the Massachusetts Department of Transportation gives the governor a menu of revenue options from which to choose, including tax hikes and fare increases.

During a highly anticipated press conference at UMass Boston, Patrick warned that failing to address the state's transportation funding crisis could result in dire consequences. He compared not taking action to defaulting on a credit-card bill.

"A choice is not to stiff Visa," he said. "I wish we didn't have the bills from the Big Dig, but we have the bills from the Big Dig, and they need to be paid in a serious way."

The governor's proposal would raise $13 billion over the next 10 years, according to state officials, more than doubling the state's current $12 billion investment in transportation. While the additional revenue is geared toward paying off a massive debt, it will also help the state modernize aging infrastructure.

Major transportation projects the state is hoping to tackle include:

n A $674 million extension of the Green Line to Somerville and Medford.

n A $1.2 billion extension of commuter-rail service to the South Shore.

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n A $430 million bike/pedestrian program.

n Replacing old subway cars and buses for $3.25 billion.

Patrick said "there's room for debate" on how to fund the projects. Among the revenue options to be considered are:

n A payroll tax for transportation.

n Raising the gas tax.

n Increasing the sales tax.

n Raising the state's income tax.

n Establishing a "green" fee that would charge more for drivers of high-pollution cars.

n A vehicle-miles-traveled tax.

Michael Widmer, president of the Massachusetts Taxpayers Foundation, said he would like to see an increase in the gas tax included in any revenue package.

"It goes directly into transportation, but most importantly, we haven't raised the gas tax since 1991, so we're paying 21 cents, but we're only getting 12 cents worth of value," Widmer said. "That's not any way to maintain our transportation system. So I think it's fair to ask people in the state to at least keep pace with inflation."

Patrick stressed that he wants any plan put forward to the Legislature to keep Massachusetts in line with "competitor states in the region."

Only 14 states have lower per-gallon gas taxes than Massachusetts. Regionally, only New Hampshire has a lower gas tax at 18 cents per gallon, while Connecticut has a tax of 45 cents, Maine 30 cents, New York 50.6 cents, Rhode Island 32 cents and Vermont 26.7 cents.

To raise $1 billion through a hike in the gas tax alone, consumers would need to pay an additional 30 cents per gallon, resulting in a 51-cent gas tax that would be the highest in the nation.

"That's not on the top of my list," said Patrick, signaling that such a move would not meet his criteria for keeping Massachusetts competitive.

Several state lawmakers said they are eagerly waiting to see what Patrick proposes Wednesday night.

Sen. Jennifer Flanagan, D-Leominster, expects there to be disagreement between residents of the Boston area, many of whom rely on public transportation on a daily basis, and those in other parts of the state, who drive more.

"I'm in support of having the conversation," Flanagan said. "I don't know if I will support any of the taxes yet."

Sen. Barry Finegold, D-Andover, suggested directing the sales-tax revenue that Amazon.com will begin collecting from Massachusetts consumers this year toward transportation. The state lost $387 million in 2011 from Massachusetts residents buying products from tax-free online retailers, according to the Massachusetts Main Street Fairness Coalition, an association of retailers, unions and local officials.

"I'm just not at this point willing to say we should raise taxes," Finegold said.

Without new revenue options, transportation officials said they will have to take action to address budget deficits, including increasing registration fees by $53; increasing annual vehicle-inspection fees by $19; increasing license fees by $86; increasing Massachusetts Turnpike tolls by 5 percent; increasing MBTA fares by 5 percent; and cutting $40 million in service from the MBTA.

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